The three major credit agencies Fitch say that the growth of stable coins for the securities markets could be disturbing -
The three major credit agencies Fitch say that the growth of stable coins for the securities markets could be disturbing -
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The American rating agency FITCH Ratings, one of the "Big Three" rating agencies, has published a report that says that StableCoin growth could influence securities and commercial paper (CP) markets. The agency says that stable coins could be "disruptive" and "stablecoin-related turbulence" could transfer "shocks" to other markets.
FITCH rating: "Stable coins could be disturbing for CP markets"
On Monday, the "Big Three" withdrawal ratings A report publishes on stable coins and the growth of these new assets. The report follows a from FITCH Salvador speaks Bitcoin (btc) as a legal means of payment in the country. The latest report explains that stablecoins have grown exponentially and the authors of the FITCH report emphasize the growth of the popular stable coin HALDSIAL (USDT) . The study also mentions Facebooks Plant the introduction of a stable coin crypto-assets names "Diem".
"The quick growth of the stable coins means that these securities are already relatively large," noted Fitch. "Although Tether's annualized market value growth slowed 21 to 45 % in the second quarter, it has increased by 230 % to $ 68.6 billion to USD in the early 2021 to October 15," added the rating agency. This growth and the "reserve allocations" could ultimately become an "important group of investors" in the US Commercial Paper Market, according to the study by Fitch Ratings. The paper adds:
StableCoins could be disturbing for CP markets; For example due to running risks. Stablecoin-related turbulence could affect the CP market itself and transfer shocks to other market participants. The risks could worsen if the infrastructure and the partners, which are used by stablecoin operators for interaction with traditional markets, have no records in the smooth processing of transactions in times of market stress or volatility.
FITCH Ratings Report: "The regulatory approach to stable coins will influence the development of the sector"
In the article, the term "disruptive" is highlighted with a hyperlink with An article published by FITCH Ratings on July 1, 2021. This specific report states that stable coins "could represent new short -term credit market risks".
FITCH researchers say in the latest stable coin report, which was published on Monday that regulations will be defined how the stable coin sector is developing. Currently, regulatory approaches in the EU and the USA are "unclear" according to the Fitch authors. The report allows the conviction that government agencies may be able to keep stable coins that are defined under the promise that reserves such as cash and low -risk state papers are kept. overlying , something so algorithmic and decentralized financing (defi) STABLECOINS How the DAI-Hebel effect could be reduced, the total damage could be reduced The FITCH report.
"A requirement to keep stablecoin operators to keep more reserves in safe and highly liquid assets could reduce the allocations to CP, but increase the influence of stable coins on the short-term government market," explains the FITCH Ratings report. "Other initiatives, including the possible introduction of digital central bank currencies, could also significantly influence the demand for stable coins."
What do you think of the recently published Fitch Rating report, which explains that the growth of stable coins could influence the securities markets and other financial areas? Let us know your opinion on this topic in the comments below.
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